Oracle vs. Peoplesoft Marc Proctor David Hayes

Overview Oracle vs. Peoplesoft ERP Development of the information Market

Oracle and Peoplesoft Oracle CEO Larry Ellison Peoplesoft CEO Craig Conway Initial bid: $16.00 a share –$5.1 Billion February 3, 2004, Oracle offered $28 a share. –$10.3 billion total.

The Market setting the stage Oracle had strong market share IBM and Microsoft also positioned strongly Microsoft had strong windows based system: SQL IBM had strong Linux based system Oracle also using Linux for its software Market showing strong growth

The Market Used to be individual programs for each department. –i.e. marketing had its own, shipping/receiving had its own. Focus was on power/performance –Changed to reliability and ability to intigrate

The Market ERP? ERP- DefinitionDefinition Consolidation of Data Connect Departments Software local to individual company Can offer cost reductions Source:

The Market ERP? Average cost: $15 million –Ranging from: $400,000 to $300 million Requires change in Operational structure Image Source: techrepublic.com

Oracle in a Dilemma Oracle needed to renew itself –Develop ERP software Concerned about loosing its market share to growing competition from IBM, SAP, and smaller organizations such as Peoplesoft. Oracle Decided to buy Peoplesoft –Control competition –Leverage technology –Gain market share

Oracle vs. Peoplesoft –NPR reportNPR report Process involved side acquisitions, court appeals, and involved price offering.

Oracle vs. Peoplesoft bidding wars Initial bid: $16.00 a share –$5.1 Billion Upped to $19.50 a share –$6.3 billion While bids being made Peoplesoft share price was on the rise! Peoplesoft acquired JD Edwards for $1.7 billion. Oracle upped to $26.00 a share –$9.4 billion

Oracle vs. Peoplesoft Oracles Last Offer February 3, 2004, Oracle offered $28 a share. –$10.3 billion total. Accepted by Peoplesoft.

Conclusion Effective forecasting, planning, and scheduling is fundamental to productivity- and ERP is a fundamental way to achieve it. Properly implementing ERP will give you a competitive advantage and help you run your business more effectively, efficiently, and responsively.